Let’s Talk Money

When you are in business, it makes an impact if something is significantly better and significantly less expensive. This website focuses on how your business can utilize low metallic zinc weights of HDG G30 while dramatically outperforming even HDG G235 all through the utilization of InterCoat® ChemGuard (which is significantly less expensive than metallic zinc). But, up until now, the question of how much money that means to you has not been in the discussion. So, are you a mill, spending millions on zinc ingots? A service center keeping track of varying coating weights and SKU’s? A manufacturer paying for zinc, chemtreat, EPA compliance, oil cleanup and frequent die replacement? Regardless, all three parts of the supply chain come out way ahead. The real question…. Is just how much?

I’ll give you a ballpark, but first a disclaimer. I don’t know how you handle margins, what you pass on to customers, what internal costs you have with important variables, what are the common gauges for you, how often you buy and in what quantity, and how many versions of galvanized material are part of your business. I don’t know if you use passivations (expense) or oil (expense and cleanup) or if you store (or ship) for periods in harsh environments.

But let’s take a hypothetical program. Let’s say our hypothetical program utilizes HDG in quantities of 15,000 tons annually (about 1250 tons a month). Less? More? You can plug in your own numbers later. For this scenario, let’s pick a common gauge, such as .0240″. For the cost of laying down our product, let’s assume that product is being applied at the galvanizing mill on an existing reverse roll coater. You don’t need to compare the high cost G235; in this scenario, you just want to compare, say, G90 to G30 with InterCoat® ChemGuard, which greatly exceeds the G90 in corrosion protection and formability, meaning you will not need oil, hexavalent chrome, or any chemtreat.

Just the zinc difference alone is impressive: for the mill, over $1,500,000; for the service center, over $1,700,000, and for the manufacturer over $1,000,000. Beyond that, how about the impact on EPA paperwork, extended die and welding tip life, cleanup costs, inventory costs, fewer processes to remove or prepare surfaces, SKU reductions, and countless other factors that are not included in these numbers. The reality is, out numbers are so conservative that it’s a bit embarrassing. Please contact us if you want help determining additional savings, unique to your business. Who would stay with something that costs more and is not as effective? Who wouldn’t want something dramatically superior that costs substantially less? You are in business. You know.